Statute of Frauds and Guarantor Contracts
Ben assists Brooke in purchasing a new couch and promises her that he will make the payments if she defaults. Which of the following statements is correct?
AThis is not a guarantor contract because Ben incurs his own debt.
BThis constitutes a guarantor contract if the price of the couch exceeds $500.
CThis agreement falls under the Statute of Frauds because Brooke is legally obligated to repay Ben.
DThis agreement does not fall under the Statute of Frauds because Ben made the promise directly to Brooke, the debtor.
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